Bitcoin (BTC) Crashes 33% In South Korea Amid Political Turmoil
Bitcoin (BTC) has fallen sharply on South Korean exchanges due to the growing political crisis in South Korea. Following the country’s president’s recent announcement, the flagship cryptocurrency and other crypto assets experienced a brief sell-off, causing its price to plummet by more than 30%.
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South Korea declares martial law for first time in 44 years
On Tuesday night, South Korean President Yoon Seok-yeol Announce The imposition of “emergency martial law” for the first time in 44 years has caused panic among South Koreans and triggered a massive sell-off in Bitcoin and other cryptocurrencies.
South Korea’s JoongAng Daily explained declaration Martial law replaces civilian government with military rule and suspends civil legal proceedings from military authority.
In addition, it allows for measures such as “restrictions on freedom of speech, press, assembly and association, special modifications of government or court powers, and the search warrant system provided for by relevant laws.”
Nonetheless, if Parliament requests the lifting of martial law with the consent of a majority of its members, the President must do so.
Yin said in a televised briefing, measure This move is to “eliminate pro-DPRK forces and maintain constitutional democratic order.” The president accused the country’s opposition of North Korean sympathies and anti-national activities.
Notably, the opposition Democratic Party holds a majority in South Korea’s parliament, which appears to complicate Yoon’s efforts to push his agenda. The South Korean president did not announce specific measures in his statement, but cited opposition motions to impeach top prosecutors and reject government budget proposals.
Through this martial law, I will rebuild and protect the free Republic of Korea, which has fallen into the abyss of national destruction. I will eliminate anti-national forces as soon as possible and normalize the country.
Democratic Party leader Lee Jae-myung announced they would try to repeal Yoon Eun-hye’s order, but expressed concern that the military would take action against members of Congress.
Bitcoin and XRP experience negative pickle premium
Bitcoin price surged after news broke correct Upbit, South Korea’s largest cryptocurrency platform, fell 27% against the South Korean won (KRW) on the local exchange.
The flagship cryptocurrency fell from the 132 million won mark (worth approximately $92,000) to 88.26 million won (approximately $62,000). However, it has since recovered from the plunge and is once again trading above pre-crash levels.
Meanwhile, the price of Bitcoin declined on global exchanges, briefly falling below the $94,000 support level before recovering to the $95,000 to $96,000 range on platforms such as Binance, ByBit, and OKX.
Likewise, XRP has seen its price It retraced 60% from the 4,000 won mark to as low as 1,623 won, worth about $1.23. The cryptocurrency has recovered from losses over the past hour and is trading at 3,600 won, worth $2.52.
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Wu Blockchain stated that the reason is behind The negative side of the “kimchi premium” is that Korean exchanges do not allow institutional market makers. This, coupled with excessive traffic, “resulted in prices not being able to synchronize within a short period of time.”
Finally, the latest reports disclose Parliament voted to abolish martial law and ended it three hours later. At the time of writing, Upbit’s Bitcoin is trading at 133.2 million KWR.
Featured image from Unsplash.com, chart from TradingView.com
